SpaceX Plans Starlink Mobile Service in US

Elon Musk's SpaceX plans to launch its own Starlink mobile service for US consumers, according to the Financial Times.

Company president and chief operating officer Gwynne Shotwell reportedly outlined the plan to investors during a recent roadshow for SpaceX's planned $1.8tn IPO. The move would see SpaceX sell mobile plans directly to customers, build its own ground network and compete with the three dominant US mobile carriers.

Until now, Starlink has mainly worked with telecom operators, giving them access to its satellite network in exchange for a share of revenue from services aimed at covering rural dead zones.

The plan comes as investors look for new sources of growth following SpaceX's initial public offering. SpaceX laid the groundwork for the expansion last year when it bought wireless spectrum licenses from EchoStar for $17bn.

Although the company says in its prospectus that Starlink Mobile would initially have the greatest impact in remote areas, its long-term goal is to compete with traditional carriers in cities and suburbs as well.

Analysts have warned that the plan could face major obstacles, including the high cost of building infrastructure and a shortage of available radio spectrum.

(max)